Sanctions in Venezuela They are back, and back with a vengeance. The US government has announced on Wednesday the reinstatement of the sanctions levied against the energy sector in Venezuela after the Chavista regime failed to fulfill their promise of a free election in the country.
The temporary six months license U.S. had granted (General License 44) to allow the country to sell their oil and gas in the international markets expired the same night of the announcement and the countdown to the final date companies will be allowed to fulfill their contracts begun. The established date is the 31st of May, and by then all sales must be completed and the complete isolation will begin again.
Although the US government admits that the president Nicolás Maduro has satisfied some of the promises that were made regarding the election, like updating the census and the voter registrations, the official American position is that there are still many vacant promises. One of the fundamental ones to allow the opposition party to present their preferred candidates.
This came after news that the Venezuelan electoral commission had barred opposition leader María Corina Machado from running and had also banned the second candidate in line Corina Yoris from taking her place. Machado swept with the votes in his parties’ primary election and could have been a solid contender for the presidency, but the electoral commission’s blocks have forced the Plataforma Unitaria coalition to nominate Edmundo González Urrutia as a temporary placeholder.
The General License 44 was approved by Washington in October after hard negotiations between the Chavistas and the opposition seemed successful regarding the presidential election that will take place on July 28. The License was very temporary and could be renewed if the promises were upheld, but the Biden Administration along with its regional allies, like Colombia, have felt the situation has not improved enough.
Another one of the upheld promises was the condition to allow independent international observers to monitor elections and set the calendar, but they are very much offset by the campaign of intimidation the regime has continued to wage against the opposition just for exercising their rights to assemble and promote their political ideas.
The sanctions are a delicate balance between pressing the Venezuelan government to celebrate free elections and not tanking the global energy trade, already under stress because of the global situation. The risk of a new flood of migrants coming from the country in response to the new Maduro win/economic situation of the country is also something the Biden Administration is trying to avoid.
Will there be any future Sanctions in Venezuela?
Not everything is bad news, the loss of the General License 44 It is not the end of the negotiations. After the 45 grace period to close transactions made from October to March, companies will be able to apply and in some cases receive, special individual licenses to be able to operate internationally, especially selling gas and oil. The goal continues to be to complete a free and independent election, not collapse the country’s economy and General License 44 could be reinstated or a new one granted if the process improves.
The US government keeps holding out hope for the improvement of the situation. In a press release published on April 17 we can find the quote “We again call on Maduro to allow all candidates and parties to participate in the electoral process and release all political prisoners without restrictions or delay. (…) We will continue to support Venezuelans’ aspirations for a more democratic, stable, and prosperous Venezuela. “We and our partners in the international community urge Maduro to uphold all the commitments made under the electoral roadmap established by the signatories of the Barbados Agreement.”
You may find a list of all the complete sanctions to Venezuela on the Office of Foreign Assets Control website.
